Fixed-Rate Mortgages

With this type of mortgage your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also "bi-weekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.)

Adjustable-Rate Mortgages

These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home. However, the interest rate changes at specified intervals ( for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.

Convertible Mortgages

This is a mortgage that allows a borrower to convert from an Adjustable Rate Mortgage to a Fixed Rate Mortgage during specified time periods. A conversion fee usually applies.

Stated Income Loans

The Stated-Income loan can be defined as a loan where the borrower states his or her income on the loan application but does not provide verification amounts of annual income. Lenders rely on verification of assets, a credit report and an appraisal on the property. Stated Income Mortgage Loans are the most commonly used and least expensive product in the reduced or no documentation suite of programs. A Stated Income Mortgage Loan is often the perfect choice if you have verifiable employment (self employment is fine) and assets but your verifiable income is just a little low for what you want to do.

100% Affordable and Community Lending

These loans are designed for borrowers who are unable to contribute a significant amount towards their down payment.

Conforming and Non-Conforming Loans

A “conforming” loan meets loan limits and underwriting guidelines established by Federal agencies such as Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). These agencies purchase mortgages from lenders in the secondary market. “Non-conforming” loans, or “jumbo” mortgages, exceed these limits. Currently, the conforming loan limit for single family homes is set at $322,700.

Jumbo Loans

Jumbo loans are mortgages that exceed the maximum loan amount established by the Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). Currently, any loan over $322,700 for a single-family residence, is considered a jumbo.